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Wuri Handayani, Ph.D.
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Faculty of Economics and Business, Universitas Gadjah Mada Jalan Sosio Humaniora No. 1, Yogyakarta 55281
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INDONESIA
Journal of Indonesian Economy and Business
ISSN : 20858272     EISSN : 23385847     DOI : -
Core Subject : Economy,
Journal of Indonesian Economy and Business (JIEB) is open access, peer-reviewed journal whose objectives is to publish original research papers related to the Indonesian economy and business issues. This journal is also dedicated to disseminating the published articles freely for international academicians, researchers, practitioners, regulators, and public societies. The journal welcomes author from any institutional backgrounds and accepts rigorous empirical or theoretical research paper with any methods or approach that is relevant to the Indonesian economy and business content, as long as the research fits one of three salient disciplines: economics, business, or accounting.
Articles 989 Documents
RECONCILING INDUSTRIAL CLUSTERS AND URBAN SYSTEMS THROUGH REGIONAL NETWORK GOVERNANCE: A CASE OF CENTRAL JAVA PROVINCE Nugroho, Prihadi
Journal of Indonesian Economy and Business Vol 25, No 1 (2010): January
Publisher : Journal of Indonesian Economy and Business

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Abstract

The location distribution of industrial clusters is often associated with their proximity to production factors geographically and economically. Many studies show how industrial clusters can maximise inter-firm social and economic benefits through a process of collective efficiency and flexible specialisation. Particularly this condition can be achieved with a support of well-articulated urban systems where the integration of public service provisions can be established to reduce total transactional costs. In fact, most regions in Indonesia fail to present appropriate urban systems for ensuring the delivery of resources across regions. Moreover, the practices of decentralised developments since the past few years have been neglecting the importance of strengthened urban system following the tendency of governments to look after local developments. As a result, the industrial clustering approach which is implemented by some local governments only creates institutional obstacles and additional costs due to the lack of intergovernmental cooperation. Regarding this issue a regional network governance should be encouraged to provide coordination milieu between governments in developing industrial clusters altogether. This attempts may be useful to cutting off the regional differences of transactional costs that the respective clusters must cope with.Keywords: industrial clusters, urban systems, regional network governance
PRICE STABILIZATION AND IPO UNDERPRICING: AN EMPIRICAL STUDY IN THE INDONESIAN STOCK EXCHANGE Husnan, Suad; Hanafi, Mamduh M.; Munandar, Muhammad
Journal of Indonesian Economy and Business Vol 29, No 2 (2014): May
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Abstract

We attempt to investigate IPO underpricing and stabilization activities. We find IPOunderpricing of around 25% in the Indonesia market. Return distribution for the first 30-tradingdays shows a positive skew, the distribution becomes closer to normality as the periodlengthens. We then develop and test five algorithms to detect IPO intervention. An importantgoal of this paper is to develop an algorithm that will be able to detect IPO intervention usingpublic data. We find that the number of closing prices that are equal to the offer prices and theskewness of the IPO return in the first 30-trading days are the ‘best’ stabilization measures.Having found “the best measures”, then we investigate under what conditions IPO interventionis more intensive. We find that underwriters tend to stabilize more on more expensive IPOs.Keywords: IPO, Indonesia, underpricing, stabilization
THE DIFFERENCE IN CONSUMER RISK PERCEPTION BETWEEN CELEBRITY ENDORSER AND EXPERT ENDORSER IN COLLEGE ADVERTISEMENTS Soliha, Euis; Zulfa, Naila
Journal of Indonesian Economy and Business Vol 24, No 1 (2009): January
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Abstract

This research aims to examine the difference in consumer risk perception between celebrity and expert endorser in advertisement. We proposed two hypothesis, H1: There is a difference in consumer risk perception between an expert endorser and celebrityendorser in college advertisement. H2: There is a difference in consumer risk perception between an expert endorser and a celebrity endorser in college advertisement, which is moderated by the consumer product knowledge.Experimental design was employed in this study with Statistical Experimental-Completely Randomized Design. This was conducted on three groups to test H1 and six groups to test H2. To test H1, the participant of each group was given full color print ads using celebrity endorser, expert endorser and nonendorser in advertisement. We gofurther splitting each group with high and low consumer product knowledge to test H2.The participants of this research are 200 students of SMA 7 Semarang. We use One Way Anova to test H1 and two ways Anova to test H2. Our findings showed that there is a difference in consumer risk perception between an expert endorser and celebrity endorser in college advertisement. We also found that there is no differencein consumer risk perception between an expert endorser and a celebrity endorser in college’s advertisement, which is moderated by the consumer product knowledge. We also found that there is difference in consumer’s perceived performance risk, consumer’sperceived financial risk and consumer’s social risk between an expert and celebrity endorser in College advertisement. On the other hand, we found there is no difference in consumer perceived psychological risk between an expert and celebrity endorser in College advertisement.Keywords: celebrity endorser, expert endorser, consumer risk perception, consumer product knowledge.
A CROSS-CULTURAL STUDY ON THE VALUE STRUCTURE OF MOBILE INTERNET USAGE: COMPARISON BETWEEN INDONESIA AND JAPAN Wardani, Ranti Yulia; Warsono, Sony
Journal of Indonesian Economy and Business Vol 27, No 3 (2012): September
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Abstract

The number of mobile Internet users has been growing rapidly worldwide. Access to the Internet via mobile cellular networks has also grown rapidly. The effects of differentculture of mobile Internet would be interesting to be investigated. The research objective is to investigate the usage pattern differences of mobile Internet users in Indonesia and Japan and to interpret them within the framework of a value structure. The data collection technique used in this study was the survey method. The same questionnaire written in mother language of each country was given to respondents in Japan and Indonesia directly. The result shows that value structures (functional value, emotional value, social value, and monetary value) simultaneously affect the satisfaction of mobile Internet usage of Indonesian respondents, which affect the satisfaction of Japanese respondents. Socialvalue did not significantly affect the satisfaction of mobile Internet usage of Japanese respondents. The implications of cross-cultural differences of mobile Internet will be discussed in this paper. This paper will be ended with discussion, conclusion with practical implications and limitations.Keywords: mobile Internet, cross cultural, m-commerce, Indonesia, Japan.
BUSINESS STRATEGIES THROUGH FIT MANAGEMENT OF HUMAN CAPITAL AS COMPETITIVE ADVANTAGE Sihombing, Haeryip; Saptari, Adi; bin Yaakob, Mohd Yuhazri
Journal of Indonesian Economy and Business Vol 25, No 2 (2010): May
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Abstract

Many organizations fail to interpret what the competitive advantages of their business. Based on lean philosophy about waste, one of the reasons is to unlock (by understandingand take advantages) of their employee’s potential. This paper proposes a conceptual framework of the so-called ‘Fitted Management’. The concept discusses two issues i.e. 1)‘Fitted Management’, an integrated concept of performance challenges, performance measurement and performance management combined with the vision and missions intocompetitive management; 2) ‘Human Transformation’, a conceptual model to support the first concept. It discusses the processing of exploring human capabilities (in organization)and how to manage this (to fit with the organization) as well as business competition in dynamic market and business climates.Keywords: human capital, competitive advantage, lean, performances, fitted management.
THE EFFECT OF NASTY AND NON-NASTY MARRIED CELEBRITY ENDORSERS ON THE ATTITUDE, BRAND, AND PURCHASING INTENTION OF THE CONSUMER Lina, Lina
Journal of Indonesian Economy and Business Vol 24, No 2 (2009): May
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Abstract

This research describes how Advertising Response Modelling (ARM) provides a framework to measure advertising performance by integrating several multiple measuresused in copy research. Several studies found that the use of celebrity endorsers is a popular execution device, but it is not without risk. The author reports the study examininghow the case of negative information about an endorser can affect three variables: attitude toward ads, attitude toward brand, and purchasing intention. The aims of this researchwere to measure the influence of negative traits of endorsers on consumers’ attitude toward the product, the brand, and the purchasing intention. Experimental research design was employed in this study. The participants in this research were students who are studying at Master of Economics Science, Gadjah Mada University, Yogyakarta. There were 100 participants out of 113 samples used as participants. Those participants were exposed to a printed advertisement of drinking product “Extra O2” brand. Then, they were also exposed to the case of negative information of the endorsers who have and have no nasty married. After that, the participants were asked to fill in self-administered and structured questionnaire. By using ARM and One-way ANOVA analysis, the research shows that endorsers without divorce problem has influenced positively the audience morethan that of endorser with nasty married. However, there are no significant differences between men and women in responding the advertising with nasty and non-nasty marriedendorsers. Keywords: Advertising Response Modelling (ARM), endorsers with nasty and without nasty married Attitude toward ads, attitude toward brand, and purchasing intention.
THE INFLUENCE OF INFORMATION, ORGANIZATIONAL OBJECTIVES AND TARGETS, AND EXTERNAL PRESSURE TOWARDS THE ADOPTION OF PERFORMANCE MEASUREMENT SYSTEM IN PUBLIC SECTOR Wijaya, Anthonius H. Citra; Akbar, Rusdi
Journal of Indonesian Economy and Business Vol 28, No 1 (2013): January
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Abstract

This research studies the use of performance measurement systems (PMS) in public sector. It provides empirical evidence on the influencing factors determined by the use ofPMS in Indonesian local government. Institutional theory, especially institutional isomorphism, is utilized as a theoretical lens to further explain the findings. The factorsunder examination are information, goals and objectives of the organization and external pressure. The context of the study is the Provincial Government of Yogyakarta (includingBantul, Gunungkidul, Kulonprogo, Sleman, and the City of Yogyakarta). This research uses mixed research method and employs Partial Least Square (PLS) and ThematicContent Analysis (TCA) to analyze and interpret the data. The results shows that information and external pressures have a positive and significant effect on the use of PMSin local government operations. In turn, information regarding incentive has a positive and significant effect on the use of PMS. In short, goals and objectives of the organization,information and external pressures influence the use of PMS.Keywords: information, goals and objectives of the organization, external pressures, the use of performance measurement systems, institutional theory, mix method.
THE INFLUENCE OF SATISFACTION AND RELATIONSHIP MARKETING ON LOYALTY WITH INDIVIDUAL CHARACTERISTICS AS A MODERATOR: A Case Study on Islamic Banking Customers in East Java Arwani, Mokhamad; Suprehatin, Suprehatin
Journal of Indonesian Economy and Business Vol 26, No 3 (2011): September
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Abstract

Prospects to attract customers to the Islamic banks do not seem to be very promising. This is mainly due to the fact that customers who had joined conventional banks arereluctant to change their accounts to Islamic banks. Customer loyalty of Islamic banks has been considered relatively low (34%) as compared to that of conventional banks. The purpose of this paper is to analyze the influence of satisfaction and relationship marketing on loyalty. 112 eligible respondents of Islamic bank customers were collected using a designed questionnaire. Structural Equation Modeling (SEM) was employed in the analysis. Findings suggest that in the context of Islamic banks, personal characteristics have a direct impact on customer loyalty, and it does seem to be a moderating variable influence of satisfaction and relationship marketing to customer loyalty. Satisfaction does not directly affect loyalty, but it indirectly affects loyalty through relationship marketing.Keywords: customer satisfaction, relationship marketing, personal characteristics, loyalty, Islamic banks.
STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS’ ATTITUDE ON PERFORMANCE Riyanto, Bambang
Journal of Indonesian Economy and Business Vol 25, No 3 (2010): September
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Abstract

The performance of a business unit, to a large extent, is determined by the quality of its strategy and how well the strategy is implemented. This study examines the effect ofstrategy implementation on performance. In particular, it investigates the extent to which the fit between two crucial strategic supporting systems, namely decentralization andbudget system, and managers’ attitude with the strategy of SBU on performance. It is argued that the more consistent the level of decentralization, degree of participation in thebudget system and managers’ attitude with the SBU strategies, the higher the performance will be, and vice versa. Unlike most prior studies, the hypothesis was tested by adopting the system of fit approach. Responses from 75 divisional managers of 75 diversified companies are analyzed. The results show that managers pursuing a strategy of differentiation (cost leadership) report high performance when they worked in highly (less) decentralized structures, are given more (less) opportunity to participate in the budget process, and had strongly positive attitude toward their jobs and their firms. These findings are consistent with the basic premise of strategy implementation that different strategies should be supported with different configuration of organizational structure and process to achieve optimal results.Keywords: strategy implementation, decentralization, participation, attitude, system of fit.
KEEFEKTIFAN KERJASAMA ANTARLEMBAGA DALAM OPERASI PEMULIHAN TERHADAP BENCANA ALAM: STUDI EMPIRIS DI YOGYAKARTA DAN JAWA TENGAH Purnomo, Hadi; Utomo, Hargo
Journal of Indonesian Economy and Business Vol 23, No 4 (2008): October
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Abstract

This study examines the effectiveness of interagency cooperation in the natural disaster recovery operation. This includes an investigation of the extent to which the situational factors (leadership, communication, trust, and commitment) influence interagency processes and outcomes. These factors reflect the behavioral aspect of interagency cooperation.Data were collected through a survey followed by semi-structured interviews to representatives of both governmental and non-governmental organizations involved in the disaster recovery operation of the post earthquake in Yogyakarta and Central Java. Several hypotheses were proposed and tested to assess the magnitude and significance of the observed variables.The result indicates different level of perceived attainment amongst organizations involved in the disaster recovery operations. The behavioral aspects of the organizational leaders were significantly influenced the cooperation processes, which leads to inter-agency outcomes. The main contribution of this study is its presentation and empirical evidence of the proposed model of inter-agency cooperation.Key Words: effectiveness, interagency cooperation, disaster recovery

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